As a South Carolina Direct Mortgage Lender, we specialize in the unique financing demands of building a home. We offer comprehensive construction financing designed to simplify the complex process of financing the lot, the build, and the permanent mortgage, all right here in South Carolina.
Choosing Your Path: One-Time Close vs. Two-Time Close
The construction journey can be financed in two primary ways. We offer both solutions to ensure you have the option that best fits your project timeline and budget.
One-Time Close (1x Close) Construction Loans
The One-Time Close program is our most popular option because it streamlines the entire process, offering significant cost and time savings. This loan finances lot purchase, construction, and the long-term financing loan.
Single Closing
Save money with only one appraisal and one set of closing costs.
Rate Lock
Interest rates are locked in prior to construction beginning, with final terms converted to long term financing terms once construction is finalized.
Single Qualification
No need to worry about requalification once the construction is complete, you will only need to credit qualify once.
Payments
Interest only payments during the construction phase, full payments begin only once the home is completed.
Key 1x Close Products
We offer robust government-backed and conventional options within the one-time close structure:
VA One-Time Close Construction Loan
Build your dream home with a single loan that finances the lot purchase, construction, and long-term financing mortgage, all while still taking advantage of your VA benefits. Qualified borrowers may put as little as 0% down.
FHA One-Time Close Construction Loan
Take advantage of the more lenient FHA qualifications while still building your dream home.
Minimum down payment of 3.5% for qualified borrowers. If building on a lot you already own, land equity could cover the down payment requirement.
Two-Time Close (2x Close) Construction Loans
For larger, more custom, or complex projects, a Two-Time Close may be a better fit. This involves securing a short-term construction loan first, and then refinancing into a permanent mortgage once the construction is finished. The benefit is more flexibility in managing cost overruns and securing the best permanent rate when the home is complete.
Custom Construction Financing Options
We're committed to offering custom financing options to help you reach your personal homeownership goals. Our comprehensive programs are available for primary residences, second homes, and investment properties across South Carolina.
Specialized Portfolio Construction Lending
For outside-the-box scenarios that do not meet standard mortgage guidelines, our in-house Portfolio Loan programs offer unique flexibility. These solutions include, but are not limited to, Bank Statement programs and cross collateralization loans.
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Lot & Land Financing — You can finance the cost of the land and construction in one Land & Home Package.
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Equity Use — If you are building on a lot that you already own, the land equity could cover the down payment requirement.
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Term Options — Mortgage term options include: 30-year fixed, 15-year fixed, and ARMs.
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Draw Process — Our technology-based construction draw process enables your home to be built quicker and ensures timely payments to your builder.
Residential Lot & Land Loans
Whether you plan to build your dream home tomorrow, or a few years from now, the journey to buying the perfect lot or piece of land is the first step. With a variety of loan options and an experienced home financing expert on your team, your first leg of the journey is sure to be a success.
Local Builder Referral
Need help finding a reliable professional to execute your vision? We work closely with a network of trusted, local South Carolina home builders and would be happy to provide a referral to help you get your project started right.
Frequently Asked Questions
How much of a down payment is typically required for a construction loan?
The required down payment varies significantly based on the program. For qualified borrowers, VA One-Time Close loans may require 0% down. FHA One-Time Close loans require a minimum of 3.5% down. Conventional and Jumbo construction loans generally require 10% to 20% down. Remember, if you already own the lot, the equity in that land can often be used to satisfy or significantly reduce the cash down payment requirement.
What is the benefit of a One-Time Close loan?
The primary benefit is cost and convenience. You complete only one application, one closing, and pay only one set of closing costs and fees, saving you thousands of dollars compared to two separate loan closings. Additionally, your permanent interest rate is locked in before construction begins, protecting you from future rate increases.
How does the construction draw process work?
Construction loans use a draw system, meaning you do not receive all the money at once. Funds are held in escrow and disbursed to the builder in scheduled installments, or draws, as specific milestones of the construction are completed, such as foundation, framing, and roofing. Before each draw is released, an inspection is performed to verify that the work has been completed correctly and according to plan. This protects both you and the lender.
Can I build a home in any area of South Carolina?
Yes, our construction loan programs are available across South Carolina. However, specific eligibility for programs like USDA loans or the use of VA loans may depend on the property's geographic location and if the builder meets specific program requirements. We verify eligibility based on the lot location and the builder's credentials before you move forward.
Is my contractor or builder required to be approved by you?
Yes, as your direct lender, we must approve the general contractor or builder you select. This involves a comprehensive review of their licensing, insurance, financial stability, and past project experience. This step is crucial for mitigating risks and ensuring your project remains on schedule and within budget.
Ready to Build your Dream Home in South Carolina?
Schedule a Consultation with us today and we'd be happy to discuss your financial goals.